2017 – A year of renewal for Paulig
The group’s brand portfolio includes Paulig, Santa Maria, Risenta, Gold&Green and Poco Loco.
“Our core business, consisting of coffee, spices and international food concepts, has a strong position in the market and we see that it makes for a good foundation for our future growth. It also enables us to build new, rising growth areas for the future”, says acting CEO Tina Andersson.
In 2016 Paulig bought the majority of shares in Gold&Green Foods Oy with the innovative Pulled Oats®. The category for plant-based protein continued to grow and Gold&Green Pulled Oats® was chosen as Finnish Food of the year 2017. After the summer, this “perfect plant-based protein” was also introduced into the Swedish market.
During the year Paulig entered with a majority stake into the Swedish start-up company Mode Cold Brew. With this investment, Paulig strengthens its position in Sweden and increases its product range with a unique cold-brew coffee beverage.
“We want to be present and drive development within the food industry, and we believe we can learn much from start-up companies. Partnership is a part of our strategy and enables us to grow with new products in our markets”, says Tina Andersson.
In 2017 Paulig’s vision for 2030 was defined, and, driven by it, our work was initiated with founding an innovation incubator for radical innovation and future growth. Its doors were opened in April 2018 under the name PINC (from Paulig Incubator).
“In order to ensure long-term growth and participate in reshaping a world of taste experiences, we see a need for also radical innovations. This type of innovation can also expand our business”, says Tina Andersson.
2017 in figures
- Net sales rose to EUR 928.9 million (916.9)
- Operating profit was EUR 62.3 million (76.9), 6.7 percent (8.4) of the net sales
- Net profit for the year was to EUR 42.2 million (55.1)
- The equity ratio was 74.2 percent (71.6)
- The number of employees was on average 2,042 (1,903)
In 2017 Paulig Group’s net sales rose to EUR 928.9 million (916.9), which constitutes a 1.3% increase from the previous year. Net sales growth was 0.9%, if one only takes into account the companies that belonged to the group during both full financial years.
Development of the divisions
Paulig Group’s operations were divided into four division during the year: Coffee, World Foods & Flavouring, Snack Food and Naturally Healthy Food. The three largest divisions - Coffee, World Foods & Flavouring and Snack Food - reached their performance targets. The result of the Naturally Healthy Food division was burdened by large market investments in the brand Risenta, as well as additional costs for establishing a new factory and the development of new products for the brand Gold&Green.
- Net sales for the Coffee division was EUR 350.6 million (343.8)
- Net sales for World Foods & Flavouring division was EUR 310,1 million (309.4)
- Net sales for the Snack Food division was EUR 257.0 million (247.4)
- Net sales for the Naturally Healthy Food division was EUR 37.3 million (38.1)
All development must be sustainable
Tastes from around the world are high on consumers’ wish lists. Since the company was founded, Paulig has offered exotic tastes from every corner of the world. When the company was founded in 1876, the assortment included coffee, tea, spices, dried fruit and brandy, among other items.
Today, 58% of Paulig Group’s sales are in the Nordic countries and 42% in the Group’s other markets. Of the net sales, 38% was generated from the Coffee division, 32% from World Foods & Flavouring division, 26% from the Snack Food division and 4% from the Naturally Healthy Food division.
“Work for sustainable development in all our value chains has continued throughout the year. We have also worked on defining how we might best support sustainable development going forward. This work has been detailed, among other things, in our Sustainability Report, which we have today published on our website”, says Tina Andersson.
“The year has been eventful, also for me personally as acting CEO of the group. I now look forward to returning to my role heading the Group’s strategy and business development. We at Paulig would like to warmly welcome our new Managing Director and CEO, Rolf Ladau, starting from the first of June”, concludes Tina Andersson.
For further information:
Acting CEO Tina Andersson, tel.: +46 70 085 2219, email@example.com
Communications Director Anita Laxén, tel.: +358 40 770 0873, firstname.lastname@example.org